Written answers

Thursday, 12 November 2009

Department of Enterprise, Trade and Employment

Redundancy Payments

5:00 pm

Photo of Shane McEnteeShane McEntee (Meath East, Fine Gael)
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Question 84: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will honour the commitment made to allow employers to offset against tax a redundancy scheme refund that have not been paid by her Department; and if she will make a statement on the matter. [40946/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Arising from concerns expressed to both the Tánaiste and myself by businesses experiencing particular difficulties in meeting tax payment obligations because of a delay in receiving rebate repayments from the Redundancy Payments Section of the Department, we have agreed an arrangement with the Revenue Commissioners to facilitate such situations. This allows employers to have the redundancy rebate payments owing to them offset against the same amount of outstanding tax liability.

In order for a company to arrange for payment of an outstanding tax liability to Revenue via their redundancy rebate payment they must request and agree this arrangement in writing with Revenue, authorizing my Department to make the company's redundancy rebate payable to Revenue. When agreement with the Office of the Revenue Commissioners is in place, Revenue contact my Department referring to the company's request, attaching a copy of such request, and instructing my Department to forward the payment directly to Revenue.

On receipt of this correspondence from Revenue, my Department follows up with the Revenue official dealing with the case informing him/her of the approximate value of claims on hand for that Company so that appropriate action can be taken in relation to the tax liability.

This arrangement is proving to be extremely useful to businesses and is being availed of in a number of situations.

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